Wednesday, October 20, 2010
If I had any doubt the parking outcome is a good one... I didn’t catch this letter to the editor the other day. There are few people I trust more than my friend Jack.
Jack has taught me about lots of things, probably including this little thing in economics called opportunity cost. I shudder to ask what the whole parking endeavor has cost the city. Beyond fees and sheer time and effort there is the investment made by the Parking Authority and I really wonder whether there are contingency fees Morgan Stanley (and others?) is going to claim in the event the city does not go through with a lease. Those $$ amounts may all pale in comparison to what I really worry about.
At the end of August the PG had this headline: City acts to curb further pension losses, Sale of futures OK'd to eliminate fund's investment risk
That headline was from August 27th specifically. In a remarkable and frightening conincidence August 27th just happened to be the day the Dow closed at it’s lowest levels since July. The Dow closed that day at 9,982 and would climb by approx 10% over the 6 weeks since then. Even with a big market loss today, the Dow's close was 10,978 Even bond prices have generally gone up since then. Get where I am going?Opportunity cost?